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Technical Due Diligence

Sell-Side Technical Due Diligence & Exit Readiness

Understand what buyers and investors will question before a sale or capital raise begins. AKF Partners assesses your technology, identifies material risks, and helps your team prepare the evidence and remediation plan needed for diligence.

Prepare for buyer scrutiny

A buyer will test whether your platform, engineering organization, and operating practices can support the growth plan. Unsupported scalability claims, unresolved security issues, and unclear AI capabilities can create additional questions and uncertainty during diligence.

AKF helps private equity sponsors, founders, and management teams evaluate those issues before a transaction. We connect technical findings to business implications, identify what needs attention, and help management explain the current state accurately.

Who we help

Our sell-side work supports owners preparing a technology business for sale, sponsors planning a portfolio company exit, founders and management teams raising growth or venture capital, and executives who need an independent assessment before approaching investors. We can also work with a company's transaction advisors to align technology preparation with the sale or fundraising process.

Raising capital?

The same preparation applies before a growth equity, venture, or private equity investment. Investors run their own technical due diligence and ask the same questions about scalability, security, AI, and key-person risk. We help you find and address gaps before the raise and prepare management to answer investor questions with evidence.

Choose the support your process needs

  • Exit readiness assessment: Identify likely buyer questions, gaps in supporting evidence, and risks that require action before launch.
  • Remediation planning and leadership: Prioritize the work, establish ownership, and lead improvements alongside your team.
  • Sell-side technical due diligence: Assess the business and prepare a technical assessment for prospective buyers to augment your CIM. External report use is defined in the engagement scope.

Vendor technical due diligence is another term for diligence commissioned by the seller; you may also hear it called pre-diligence or a technology self-assessment. An internal readiness assessment and a report intended for prospective buyers serve different purposes; we agree on the audience and intended use before work begins.

What we assess

  • Architecture and operations: Scalability, reliability, recovery, dependencies, and operating costs relative to the business plan.
  • Engineering and product delivery: Roadmap feasibility, delivery performance, quality, technical debt, and organization design.
  • Security and data: Security posture, material incidents, access controls, data governance, and the evidence supporting management's claims.
  • AI capabilities and exposure: Product differentiation, data and model dependencies, operating economics, and how AI may affect the business.
  • Leadership and continuity: Key-person dependencies, team capability, ownership of systems, and readiness to execute the growth plan.

The depth of each area reflects the company, transaction, and agreed scope. Findings identify the evidence reviewed and material limitations.

What you receive

The engagement defines the deliverables and intended audience before assessment begins. Depending on scope, these include:

  • A technology assessment: Strengths, material risks, and implications for the growth plan, supported by the evidence reviewed.
  • A prioritized remediation roadmap: Recommended actions, accountable owners, dependencies, and estimates of effort, cost, and timing.
  • An evidence and preparation plan: Missing documentation, claims requiring support, and likely questions for management to address.
  • An agreed sell-side report: A technical assessment for prospective buyers to augment your CIM, prepared for the defined transaction audience with scope, timing, and limitations made clear.

An assessment commissioned by the seller must remain evidence based. Material issues should be explained accurately, including their business implications and the plan to address them.

Prepare for the AI questions buyers will ask

Buyers need to understand what AI contributes to the product and whether that contribution is sustainable. We assess relevant capabilities, data access, model dependencies, evaluation practices, and operating costs. We also examine how AI could change the product's competitive position.

Where relevant, AKF's five-level agentic development maturity model helps explain how engineering teams use AI and what evidence supports claimed productivity gains. The assessment reflects actual practices and outcomes.

When to begin

If the sale is 12–18 months away, an early assessment gives the team time to address structural issues and demonstrate progress. If the process is closer, focus on material risks, the evidence buyers will request, and a credible plan for work that will continue after the transaction.

Already in a sale or fundraising process? We can discuss a focused scope aligned with the remaining schedule and available management time.

How the engagement works

We first agree on transaction objectives, report audience, scope, and access to evidence. Focused management sessions and document review establish the current state. We then discuss findings with management to resolve factual questions and prioritize action. Remediation leadership and transaction support can be scoped separately.

Timeline and fees

Timing and fees depend on the number of products, architecture complexity, evidence availability, management access, and intended use of the report. A focused readiness assessment has a different scope from remediation leadership or a report for prospective buyers. We agree on deliverables, fees, and the delivery schedule before work begins.

Operators who can lead the work

AKF combines technology assessment with experience leading engineering organizations. When the review identifies work that needs to happen, we can help set technical direction, establish accountability, and lead execution alongside your team.

Frequently Asked Questions

What is sell-side technical due diligence?

Sell-side technical due diligence is an assessment commissioned by a company or its owners before a sale or capital raise. It evaluates technology, teams, and operating practices so the company can identify risks, prepare evidence, and explain the business accurately to prospective buyers or investors.

How is exit readiness different from vendor due diligence?

Exit readiness is preparation: finding gaps, prioritizing remediation, and getting management ready for buyer questions. Vendor technical due diligence typically produces a seller-commissioned report for prospective buyers; the intended audience and permitted use should be agreed before assessment begins.

When should a company start technology exit preparation?

Starting 12–18 months before a planned sale can provide time to address structural risks and demonstrate improvement. Companies with less time should prioritize material issues, missing evidence, and a credible plan for work that will extend beyond the transaction.

How much does sell-side technical due diligence cost?

AKF scopes fees to the business and intended deliverables, including the number of products, technical complexity, evidence availability, and transaction schedule. Readiness assessment, remediation leadership, and an external sell-side report are distinct scopes; fees are agreed before work begins.

See more questions in our FAQ →

Get Started

Discuss your exit or fundraising plans

Tell us where you are in the sale or fundraising process, what buyers or investors are likely to question, and when you need to be ready. We will help define the right assessment and preparation scope.